LRTA board approves Cavex award to MPIC-led winning bidder

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The Light Rail Transit Authority (LRTA) Board on Friday formally approved the awarding of the P65-billion LRT Line-1 Cavite Extension (Cavex) project to the Light Rail Manila Consortium, which won its recent bid.

“The Lrta board approved this morning the awarding of the LRT Cavite to Light Rail Consortium,” LRTA spokesperson Hernando Cabrera said in a text message to reporters.

“The LRTA Board approved the award based on the recommendation of the Special Bids and Awards Committee [BAC] finding the said recommendation proper and in order. The Board also authorized Sec. Abaya to sign and issue the Notice of Award and the Concession Agreement,” he added.

On Tuesday, the BAC recommended the awarding of the Cavex project to the Light Rail Manila Consortium. “The BAC … resolved to recommend the award of the project to the Light Rail Manila Consortium,” DOTC spokesperson Michael Arthur Sagcal said on Monday morning.


Last month, the Light Rail Manila Consortium led by Metro Pacific Investments Corp. (MPIC), the lone bidder for the project, offered to pay the government a concession premium of P9.35 billion for the right to build, operate, and manage the new rail line.

The consortium is made up of Metro Pacific’s Light Rail Corp. with a 55-percent share; Ayala Corp.’s AC Infrastructure Holdings, with 35 percent; and Australian subsidiary Macquarie Infrastructure Holdings Pte. Ltd., with 10 percent.

Already approved by the National Economic and Development Authority (NEDA), the Light Rail Transit Line 1 (LRT-1) Cavite Extension project is the biggest infrastructure project under the government’s Public-Private Partnership (PPP) program.

The Cavite or South Extension Project will extend the existing LRT Line 1, which covers 21 stations from Roosevelt Avenue in Quezon City to Baclaran in Pasay City.

The Cavite project will extend the service line by 11.7 kilometers to Bacoor, Cavite, passing through the cities of Parañaque and Las Piñas and adding 10 more stations.

DOTC earlier clarified reports that the bid award for the Cavex project will result in a fare increase for LRT-1 passengers starting August 1 this year, saying that the fare increase is necessary to cover increased operations and maintenance costs of the existing line, and is not in any way related to the extension project.

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